Stellar Price Analysis: XLM Consolidates Ahead of a Possible Rally

Stellar Lumens price:

$0.059

Key XLM resistance levels:

$0.08, $0.09, $0.10

Key XLM support levels:

$0.05, $0.04, $0.03

*Price at the time of writing

Developments around Stellar

The Stellar Development Foundation (SDF) has partnered with the Keybase messaging application to distribute up to 2 billion XLM tokens (about $120 million). The airdrop campaign applies to Keybase users or those who have opened an account with HackerNews or GitHub before the announcement of the airdrop campaign.

The airdrops will be happening on a monthly basis in batches of 100 million XLM. Already, 300,000 Keybase users have benefited from the 100 million XLM (about $6 million). The SDF has promised three months of airdrops, but it is not certain whether the 2 billion XLM allocation will be exhausted. In the previous year, the SDF partnered with Blockchain.com for a $125 million airdrop.

XLM/USD Long-term Price Prediction: Bearish

In the past six days, the price of Stellar fell to a yearly low at $0.058 after the bulls failed to push the price to the previous high at the $0.065 supply zone. The bears have taken over as the market approaches another low. If the bears break the previous low of the $0.058 demand zone, then it is likely that price will fall to a new low at the $0.05 support level. Another decline may result in panic selling. However, a breakout at the $0.058 demand zone will be a sign that the trend has changed.

Daily Chart Indicators

The exponential moving averages have continued to trend southward, indicating that the market is bearish. The 12-day EMA (blue line) is acting as a resistance XLM's price. On September 8, the bulls were resisted by the 12-day EMA as the market resumed its downward move.

XLM seems to be trading in a tight range. The coin is likely to have a breakdown or a breakout if the upper or the lower trend line is broken. The stochastic indicator is making a U-turn below the 25% range, indicating that price is in a bearish momentum.

XLM/USD Medium-term Price Prediction: Ranging

On September 6, XLM fell to a low of $0.058 and consolidated between the $0.058 and $0.064 demand zones. It appears the bulls and bears are undecided about the direction of the market. However, the range-bound move is not likely to continue indefinitely.

If the downward move persists and the bears break the $0.058 demand zone, the crypto is likely to fall to the next support level. On the other hand, if the bulls break the upper price range ($0.064), the coin may resume an upward move.

4-hour Chart Indicators

The Fibonacci tool was drawn between the swing low of August 29 and the swing high of August 25. After falling to the low of $0.060 on August 29, the cryptocurrency's price made an upward movement. During the retracement, the body a bullish candlestick tested the 0.786 Fib. retracement level. This implies that the XLM price is likely to fall to a low of 1.272 Fib. extension level. At this level, the price of Stellar is likely to reverse.

General Outlook for Stellar

The XLM/USD pair appears to have reached the oversold region of the market, suggesting that buyers might be around the corner. Traders should initiate long trades if price forms at the bottom. Also, they should bear in mind the Fibonacci tool reading at the 1.272 extension level. It is probably best to wait for a trend reversal pattern to form before initiating any trade.